Turkish Transport and Infrastructure Minister Adil Karaismailoglu has called on Israeli Transportation Minister Miri Regev to allow a leading Turkish firm to bid in a recent tender for the privatization of Haifa Port, Israel Hayom learned Monday.
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The port complex in Haifa is the largest of Israel's three major international seaports, the others being the Ashdod Port and the Eilat Port, and it is one of the largest ports in the eastern Mediterranean in terms of freight volume.
The tender, slated to be concluded in the summer of 2021, is said to be worth 1.8 billion shekels ($544 million). So far 10 Israeli, American, and British companies have entered their bids.
Karaismailoglu has called on Regev to allow Yilport, a leading Turkish multipurpose port operator, "a fair opportunity" to enter the tender.
Chinese company Shanghai International Port Group has already won a tender to operate the new harbor being developed in Haifa for a period of 25 years from 2021. The current tender seeks to pose competition to SIPG by operating another part of the port.
Yilport wants to enter the tender in collaboration with Britain's Global Port and US-based GraeStone. Their rivals in the bid are Dubai Ports World, an Emirati multinational logistics company based in Dubai, which has teamed with Israel Shipyards; Adani Ports and Special Economic Zone, India's largest private multi-port operator, which has partnered with Gadot Chemicals, and two other American companies that have found Israeli partners for the ventures.
Yilport's operational record is solid. The company, owned by Turkish tycoon Robert Yuksel Yildirim, operates four ports in Turkey, three in Scandinavia, nine in the Iberian Peninsula, two in South America, one in Italy, and one in Malta.
Still, the National Security Council has expressed reservations about allowing a Turkish firm to bid in a tender involving a strategic asset, despite the fact that the Tenders Committee at the Government Companies Authority has cleared Yilport's participation in the tender.
In the case of the Haifa Port, both the NSC and the Tenders Committee can submit recommendations on the matter, but the final say falls to Regev and Minister of Digital Affairs David Amsalem.
In a letter to Regev, Karaismailoglu noted that it was the Israeli government that suggested Yilport bid in the tender in the first place and that given the contribution its participation – and potential win – in the bid could have to bilateral trade relations between Israel and Turkey, the matter should not get bogged down by bureaucracy.
The Turkish Embassy in Tel Aviv has also approached the Foreign Ministry on the matter.
In a statement, the Digital Affairs Ministry said, "The Government Companies Authority, which is under the responsibility of Minister Dudi Amsalem, is leading the sales process of the Haifa Port to a strategic buyer. This requires clearing bidders on various issues, including on the competition, diplomatic and security levels.
"The GCA is consulting with relevant government bodies to ensure Israel's vital interests in the Haifa Port are maintained. The process is likely to be finalized by summer. Minister Amsalem and or the GCA cannot release information about the candidates to the media."
The Transportation Ministry was unavailable for comment.
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